Logistics

5Production Logistics

5.1. Sheet 26: Key Concepts of Production Logistics

Key point

Production logistics, sometimes called internal logistics, is central in companies, especially in the secondary or industrial sector. The most extensive work on maximizing production rates is formulated at this level. The challenge in production logistics is to match production rates with those of distribution, while remaining flexible and responsive. This requires a detailed calculation of production requirements and planning.

5.1.1. Criteria in production

Three criteria in production can be used (see Table 5.1).

Table 5.1. Criteria in production

Criteria	Type	Description
Technique	Continuous process	Manufacture of products without any interruption (e.g. oil and chemicals).
	Discontinuous process	Manufacture of products individually, by means of a chain (e.g. textile).
	Process by project	Manufacture of a single product for a limited time (e.g. boat)
Quantity produced	Unit production	The choice of the quantity produced is generally based on technical and/or cost criteria. The more technical and/or expensive the product is, the more unitary the production will be.
	Batch production
	Large series production
Relationship with the customer	Stocked production	This concerns the so-called push-flow production.
	Firm Order Production	This concerns the so-called pull-flow production.

5.1.2. Workflows in production: push, pull and tight flows

In production, first, we will ...